Calculating Ndi correctly

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October 21, 2014 at 1:03 pm #205238
KISHA
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In the Dec 2009 , question 3- Alaska Salvage
I set down the Nd1 in as the same in the examiner answer however I am getting the incorrect answer. Can you guide in as to the order in which this should be done.
IN 85/90 I GOT – 0.0571 + ( this is the second part I got .35)
The denominator I got .4472
October 21, 2014 at 5:38 pm #205288
John Moffat
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Your denominator is correct: 0.4472
For the numerator, ln(85/90) = – 0.0572
(0.05 + 0.5 x 0.2^2) x 5 = (0.05 + 0.5 x 0.04) x 5 = (0.05 + 0.02) x 5 = 0.35
So the total numerator is – 0.0572 + 0.35 = + 0.2928
So d1 = 0.2928 / 0.4472 = 0.6547
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